EIB, State Investment Management Agency launch support for Lithuanian companies

In a ceremony at the Lithuanian Ministry of Finance today, the European Investment Bank (EIB) and State Investment Management Agency (VIVA) have announced new support for Lithuanian companies in the context of the Pan-European Guarantee Fund (EGF). This is the first time that portfolio guarantee under EGF will support financing for Mid- Caps and Large companies.

The signature between the EIB and VIVA regards a Linked Risk Sharing instrument to improve access to finance for Mid-Caps and Large Corporates in Lithuania. Through the additional portfolio created by the guarantee, the operation is expected to also indirectly support local SMEs.

The agreement will make available up to €50 million in new financing for Lithuanian Mid-Caps, of which the EIB will guarantee 50%, supporting them in growing their way out of the economic fallout caused by the COVID-19 pandemic.

Gintarė Skaistė, Minister of Finance of the Republic of Lithuania, said: “Our extensive partnership with the European Investment Bank is particularly significant. The EIB is at the forefront of implementation of the European Union priorities to boost sustainable growth and reinforce economic and social cohesion. Signing this Agreement under the framework of the European Guarantee Fund will further strengthen our fruitful cooperation and benefit the corporates in Lithuania by improving their access to finance.”

Thomas Östros, vice-president of the European Investment Bank Group, said: “The European Guarantee Fund has already made available several hundred million euros in support of Lithuanian businesses. Most of this financing was aimed at supporting SMEs, which were the most affected by the crisis. Now, thanks to our collaboration with VIVA, and the support of the Finance Ministry, I am glad that we can take a further step to also make financing available to larger companies.”

Dainius Vilčinskas, Chief Executive Officer at State Investment Management Agency, VIVA, noted: “This is the first time that the EIB steps forward and agrees an EGF guarantee not only for small, but also for medium and large Lithuanian companies. This agreement will allow VIVA to enable access to finance for Lithuanian companies through debt instruments such as bonds and loans. We are strongly committed to becoming a viable financial partner for Lithuanian business, and I hope this partnership will also serve as a milestone for our future cooperation with the EIB in developing new financing solutions for Lithuanian businesses. The whole spirit of this agreement stands for the bilateral understanding of the importance of responsible and effective business nudges for a better and faster post pandemic recovery, enhanced business investments and a continuous business shift to more sustainable models”.

The Pan-European Guarantee Fund (EGF) was created by the European Investment Bank Group (EIB and EIF) and EU Member States as a community response to the COVID-19 pandemic. It aims to increase access to credit for businesses in the wake of the economic effects of lockdowns and restrictions to contain the COVID-19 outbreak.

https://www.devdiscourse.com/article/business/1892127-eib-state-investment-management-agency-launch-support-for-lithuanian-companies

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